Share Via Email

Hyderabad, Nov 14 (PTI) If the real estate sector is
brought within the ambit of GST, it should be along with the
stamp duty and moderate rate, and should not add to the cost
of housing and construction, according to an industry body.

The Associated Chambers of Commerce and Industry of India
(Assocham) said the Centre is certainly in favour of realty
under the Goods and Services Tax (GST) but the states have to
be brought on board because there are revenue implications.

There are reports that the realty sector may be brought
under the GST without stamp duty and other levies like
property tax. That will serve no purpose and instead would
lead to more confusion, Assocham secretary general D S Rawat
said.

"If the sector has to be given a boost, it should be
brought under GST along with stamp duty with the rate being
moderate and should not add to the cost of the housing or
construction," Rawat told PTI.

"That would be a real demand push. In any case, there is
no justification for cement still remaining in the 28 per cent
category," he said.

The Assocham official also expressed his views on whether
petroleum, electricity and alcohol should be brought under the
GST.

He said ideally all these sectors, be it real estate,
petroleum, electricity and alcohol, should be brought under
the GST. But, expectations have to be matched with what is
doable at this point of time.

As far as the petroleum sector is concerned, Rawat said,
the states are certainly not on board as they depend hugely on
the revenue from sale of petrol and diesel. Similar is the
case with the Centre, he said.

"So, it will take a lot of time and would also depend on
the kind of revenue impact the initial period of the GST
rollout has shown," Rawat said.

"Ideally from the consumer point of view, if petroleum is
brought under GST, the pump prices of petrol and diesel would
come down drastically, but that would be asking a bit too much
at this point of time. Let's be real," he said.

Rawat also said that electricity must be a part of the
GST regime under the "merit and essential items attracting the
lowest level (rate)".

"For alcohol, even if it is brought (under GST), it would
be under the demerit list and may even attract additional
cess. But for administrative point of view, it makes sense to
bring it under GST," he added. PTI RS GK
BAL
.

This is unedited, unformatted feed from the Press Trust of India wire.